S.Korea’s LG buys 50,000 tonnes naphtha at weaker premiums

SINGAPORE (ICIS)--South Korea’s LG Chem has bought two naphtha cargoes totalling 50,000 tonnes for delivery in the second half of July, traders said on Tuesday.

The deals for the cargoes were done at a premium of 50 cents/tonne to $1/tonne pricing over Japan quotes CFR (cost & freight), they added.

LG last bought 75,000 tonnes of spot naphtha supply for delivery in the first half of July.

The deal for theYeosu-bound cargo was done at a premium of $9.00-10.00/tonne (€6.75 - 7.50/tonne) to Japan quotes CFR, while the other two cargoes for Daesan delivery fetched a premium of $10.00-10.50/tonne to Japan quotes CFR.

The spot premiums have fallen drastically amid a supply deluge in Asia, where the demand outlets are not enough to absorb the excessive cargoes in the market, traders said.